I dont like the fact the port is paying the council 50 - 60m special div just before the ipo thats money could have been spent in the upgrade. or are using ipo proceeds to pay them lol
Forsyth & Co had to convince the council to proceed with the IPO somehow didn't they?
I hear this is going to be very heavily oversubscribed... good luck everyone!
Forsyth & Co had to convince the council to proceed with the IPO somehow didn't they?
I hear this is going to be very heavily oversubscribed... good luck everyone!
be very hard to get even a little on this. i imagine they could price it quite high and still have big demand. anything cheaply priced would be ripping of the taxpayers at the moment
be very hard to get even a little on this. i imagine they could price it quite high and still have big demand. anything cheaply priced would be ripping of the taxpayers at the moment
I guess the real question is what the best comparator is.
If its POT then the sky's the limit for the price as POT have a huge PE (and multiplier to revenue). The pricing mentioned earlier in this thread indicates its price-point is more expensive than Southport but below PoT. If you use southport multiples, you don't get to the $500m+ pricepoints being mentioned.
SouthPort
Revenue of $40.7m (to Jun 2018)
Operating profit before financing $13.8m
Net surplus of $9.7m
Net Assets $40.1m
Market Cap (28 Jun) $177m = Historical PE 18.2, 4.7x revenue.
Half yr to Dec2018. Revenue up but profitability down slightly
Port of Tauranga
Revenue of $283.7m
Operating result before interest, tax and equity accounted $129.3m
Net Assets $1.12b
Net surplus $94.3m
Market Cap (28 Jun) $4.31b = Historical PE 45.7, 15.3x revenue
I think part ipo you have to factor the massive demand that will push the price up. Market sentiment will be huge imo
Yes agree with that market sentiment comment but it’s coming from press hype to the retail mob. This is no POT in fact to a large extent POT can dictate how successful Napier Port might or might not be.
True, but they're not raising a massive amount of money.
Agree its no POT, but they state that they want money for growth capacity, and they're subject to land value increases. With plenty of demand for nz products, and primary industry in the area, I guess it will be a good short, medium or long term hold.
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